CACP suggests phased increase in Urea prices to curb imbalance use and can use the price hike to increase the subsidy on Potassium and Phosphorus fertilizers
The CACP (Commission for Agricultural Costs and Prices), a crop advisory committee, has suggested that the imbalanced use of highly subsidized urea fertilizer has distorted the NPK ratio and led to its consumption beyond the recommended dose
Price Policy Reports for Current season
As per the CACP’s latest reports for the 2026-27 rabi marketing season, India is moving towards achieving self-sufficiency, as urea imports have been declining over the past few years from 8.5 mt in 2015-16 to 5.6 mt in 2024-25, while production has increased from 24.5 mt in 2015-16 to 31.4 mt in 2023-24.
In some districts of Andhra Pradesh and Tamil Nadu, consumption has increased far beyond the recommended dose, reaching up to 500 kg/hectare and resulting in a distortion of the NPK ratio.
Issues such as the depletion of organic carbon content and the deficiency of micronutrients in the soil are also increasing rapidly due to the excessive use of chemical fertilizers.
Initiatives taken by Government
The government has launched various initiatives such as GOBARdhan and PM-PRANAM, and is also promoting the use of biofertilizers, nano-fertilizers, and organic fertilizers. Although the impact of these products is not as efficient as chemical fertilizers and they cannot fully replace them, they still help in replenishing the soil.
CACP recommended that usage of fertilizer should be done on the basis of analyzing soil test report as it will help in cost reduction of farmers as well as help in maintaining fertility of soil and all the modern equipment should be used for which proper training sessions should be given to farmers time to time
